The Federal Government has revised the tariffs on imported tyres from 10% to 40%. The increase is aimed at reviving the domestic tyre industries by making imported ones more expensive.
This is however a reversal of FG’s 2007 tariff review which unfortunately led to closure of most indigenous tyre industries.
Local producers (Michelin and Dunlop) were unable to compete efficiently due to rising cost of generating electricity to power plants, as well as huge sunk cost and lack of economies of scale.
Meanwhile, Dunlop Nigeria has unveiled plans to commence operation following shut-down of its factory in February 2009.